What I'm wondering is that on Interactive Brokers, I'm unable to get my fills for doing lotto scalp trade on let's say AMZN or TSLA option during the last 30 minutes of the market on Fridays. I don't have a buying power to sell AMZN or TSAL options naked. So, it's about longing expiring OTM options on big stocks like Amazon or Tesla during the last 30 minutes on Fridays. If these stocks make a move during closing hour of Friday sometimes your OTM options can be quite profitable but you also have to be quick on your finger. I had some success with SPX options but that is cash-settled and you don't have to worry about margin as long as you're a net buyer. So, it's less of a pain but you could sometimes get better moves with stocks like AMZN, TSLA or even NFLX. I don't do this type of trade every Fridays but when things set up it's worth the shot. I noticed that if I try to enter a trade by either buying OTM options on these stocks during the last 30 minutes, the platform won't let me due to my buying power not meeting the requirement in case of an assignment. However, one time I tried it during the last 15 minutes and got a fill. Strange. Don't you think? When I contacted Interactive Brokers about this, they gave me the office "copy-and-paste" answer about margin requirement and all that explanation. Plus, I always get out of my position before 4:00PM (EST) so there's no possibility of getting assigned unless my position is going well but I lose my internet at 3:59:00. And my internet doesn't come back until after the market is closed. If my position is out of the money and then it's going to expire worthless. Yes, there's a tiny possibility of my position being in the money by 1 cent. But since I always I close my winning lotto positions before 3:50, I see no reason why Interactive Brokers doesn't give me a fill. Besides, when you buy an option contract, you have the right to exercise should your call/put expires in the money but not the obligation. That's options 101. By the way, I heard that market makers make it difficult for lotto options scalping on Fridays by jacking up the IV during the last hour. I don't know this for sure but I guess it's possible. Anyone knows about this? I don't recommend doing this kind of trade. It can be like throwing money away in the toilet albeit cheap. However, sometimes you find yourself in a big win when you buy an OTM call/put for 0.30 and sell it at 6.00 in a matter of minutes.
So you have the discipline to always get out no matter what? There is no guarantee of liquidity on expiring options. What about the scenario where your option closes in the money, gets assigned, news comes out over the weekend, the stock opens down 5%. You going to be good for the loss? Your title of the thread should be - I don't have enough cash to handle assignment and I want my broker to trust that I will pay them for any losses no matter what - I promise, I'm good for it.
"the answer is not in our stars but in ourselves." "the answer is not in our stars but in ourselves." Reread your post and think.
So you just explained why you cannot buy options. Why ask the question when you already provided the answer?
No hard feelings if you promise on your worthless options to read Dale Carnegie's classic tome How to make friends and influence people.